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In a move aimed at fostering financial security for future generations, President Donald Trump has proposed the creation of $1,000 “Trump Accounts” for newborns born between January 1, 2025, and January 1, 2029
The initiative, part of a broader domestic policy bill, seeks to provide every eligible child with a government-funded investment account to kickstart their financial future.
Originally dubbed “MAGA Accounts” (Money Accounts for Growth and Advancement), the program has been rebranded to bear the president’s name
The accounts would be managed by banks or investment firms and function similarly to traditional investment accounts, allowing contributions from families and third parties.
Every child born in the U.S. during the specified period, with a Social Security number, and whose parents also have Social Security numbers, would be automatically enrolled in the program. The U.S. Treasury would oversee the setup and funding of these accounts.
The government would deposit $1,000 into each account, which would be invested in the stock market on behalf of the child
Families and third parties could contribute up to $5,000 annually, potentially growing the funds significantly over time.
Funds from the accounts could be used for education-related expenses, home down payments, or starting a small business.
Withdrawals for unapproved expenses would incur penalties, including a 10% fee and taxation at the income tax rate.
At age 18, account holders could withdraw half of the funds, subject to capital gains tax if used for approved purposes. Full access would be granted between ages 25-30, and after 30, funds could be withdrawn for any purpose
While the initiative has garnered support from top business leaders, including Michael Dell (Dell Technologies), David Solomon (Goldman Sachs), and Dara Khosrowshahi (Uber), concerns remain over its long-term fiscal impact
The Congressional Budget Office estimates the program could add $2.4 trillion to the national debt over the next decade
